10949 (v.4) WASM International Resource Trade 601

Area:

WASM Mineral Economics Teaching Area

Credits:

12.5

Contact Hours:

16.0

Lecture:

4 x 4 Hours Weekly

Anti Requisite(s):

13005 (v.2) WASM International Resource Competitiveness 601 or any previous version

Prerequisite(s):

10939 (v.4) WASM Natural Resources Economics 601 or any previous version

Syllabus:

The Importance of Minerals Trade, trade and growth, the balance of payments, Basis for Trade - Factor Endowments and Exchange, Factor Mobility or Commodity Trade - the alternatives, Factor Price Equalisation - which factors? Pricing and Trade Mechanics. Market Structure - Multinationals and vertical integration - International price/quantity stabilisation, Market Disequilibrium - trade barriers, interventions, restrictive trade practices. Transport - Physical Issues, Process Location and Product Specs, Costing and Netbacks. Trade Finance and Risk - Principals and Agents, Physical - Risk and Hedge, Exchange rates - PPP and Practice and Theory, Spot rates and Forward Rates, Exchange risk - some practice. Additional Considerations - External influences such as environmental issues and technical transfers. Actual tuition undertaken as 16 hours of class in a four day module.

Unit Outcomes:

On successful completion of this unit, students will have- Discussed the theory and practice of international trade in physical resources. An understanding of the elements of the economics of shipping mineral commodities. An appreciation of the instruments and organisation of the financing of mineral trade. Explained the key role of exchange rates in influencing mineral trade.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Appleyard, Denis. and Field, Denis. (2002), International economics (fourth edition). Boston, Irwin McGraw-Hill. Meier, Gerald. (1980), International economics: the theory of policy. Oxford, Oxford University Press. Porter, Michael. (1990), The competitive advantage of nations. New York, Macmillan. Sodersten, Bo. and Reed, Geoffrey. (1994), International economics (third edition). Basingstoke, Macmillan. Australian Bureau of Agricultural and Resource Economics. (2002), Minerals and energy outlook 2002, proceedings of the national outlook conference. Canberra, Australian Bureau of Agricultural and Resource Economics. Noakes, M. and Lanz, T. (eds.) (1993), Cost estimation handbook for the Australian mining industry. AusIMM, Monograph No, 20. Branch, A.E. (2001), Elements of shipping (eighth edition). London, Chapman and Hall. Chartering Annual (annual), New Jersey, Maritime Research Inc. Gray, J.W. (1987), Futures and options for shipping. London, Lloyd's List. Branch, A.E. (1986), Dictionary of shipping international trade terms and abbreviations (third edition). London, Witherby and Co. Gray, J.W. (1987), Futures and options for shipping. London, Lloyd's List.

Unit Texts:

No prescribed texts.

Unit Assessment Breakdown:

Assessment during unit 20%, Final examination 80%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 2	Y
2004	Bentley Campus	Summer Period	Y
2004	Kalgoorlie Campus	Semester 2	Y
2004	Kalgoorlie Campus	Summer Period	Y